Acadian Timber Corp. Reports Fourth Quarter and Year End Results

Executive Summary

• Acadian Timber reported Q4 2025 sales of $22.0 M (up from $20.2 M YoY) and full‑year 2025 revenue of $87.0 M, down from $91.6 M in 2024.
• Adjusted EBITDA fell to $5.2 M for Q4 and $15.8 M for the year versus $7.0 M and $38.9 M respectively in 2024; Free Cash Flow declined to $1.9 M (Q4) and $6.6 M (year).
• The company declared a quarterly dividend of $0.29 per share ($5.3 M total) and a full‑year dividend of $1.16 per share ($20.9 M total).

Key Details

• Financial Highlights – Q4 2025
• Sales: $22.0 M (↑ 9% YoY)
• Adjusted EBITDA: $5.2 M (↑ 40% YoY)
• Adjusted EBITDA margin: 24% (↑ 6 pts)
• Free Cash Flow: $1.9 M (↓ 38% YoY)

• Net income: $39.7 M ($2.18 per share), up from $5.6 M ($0.32 per share) YoY, driven by higher fair‑value gains.

• Financial Highlights – FY 2025

• Revenue (timber sales & services): $87.0 M (↓ 5% YoY)
• Adjusted EBITDA: $15.8 M (↓ 59% YoY) – decline largely reflects loss of carbon‑credit revenue ($24.6 M in 2024).
• Adjusted EBITDA margin: 18% (down from 33%).
• Free Cash Flow: $6.6 M (↓ 78% YoY).

• Net income: $49.0 M ($2.70 per share), up from $21.7 M ($1.24 per share) YoY.

• Dividends

• Q4 dividend: $0.29 /share (total $5.3 M).

• FY dividend: $1.16 /share (total $20.9 M).

• Operating Metrics – New Brunswick Timberlands

• Sales volume: 245.2 k m³ (↑ 23% YoY).
• Weighted‑average selling price: $74.48 /m³ (↓ 6% YoY).

• Adjusted EBITDA Q4: $5.5 M; FY: $19.7 M, margin 29% Q4, 26% FY.

• Operating Metrics – Maine Timberlands

• Internal logging operations launched in 2025 (equipment purchase $2.4 M; acquisition of A&A Brochu assets for $6.9 M).
• Q4 sales: $3.0 M, volume up 5% YoY; FY sales down 40% to $10.9 M.

• Adjusted EBITDA Q4: –$0.1 M (‑2% margin); FY: –$2.2 M (‑20% margin).

• Environmental Solutions

• No carbon‑credit sales in 2025 after a $24.6 M sale in 2024.

• Project transitioning to ACR Version 2.1 protocol; registration of next tranche delayed.

• Balance Sheet (Dec 31 2025)

• Cash: $4.8 M (down from $15.3 M).
• Net liquidity: $17.4 M (including credit facility availability).

• Long‑term debt: $110.0 M (up from $68.9 M).

• Outlook

• Anticipates stable near‑term demand for sawlogs; pricing pressure expected to continue.
• Expect modest production in Q2–Q3 2026 due to seasonal slowdown.
• Carbon‑credit market outlook neutral; registration of additional credits expected soon.

Notable Quotes

• “While 2025 brought a multitude of challenges, Acadian delivered steady operational performance… we remain confident that the stability of the northeastern forestry sector… will support long‑term demand for our products.” – Adam Sheparski, President & CEO.